Sharp 2007 Annual Report Download - page 32

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Shareholders and stakeholders
Appropriate disclosure, provision of information
Internal audit function: Internal Audit Division
Internal audit
Board of Directors
Internal Control Committee
Formulation of basic policies of internal control,
creation and supervision of internal control system
Deliberation and submitting of basic policies of
internal control system,
basic policies of internal audit and internal audit planning, etc.
Board of Corporate Auditors,
Corporate auditors Accounting auditors
Accounting audit
Monitoring
President
Business groups/Sales
and marketing groups*
Self-audit
Internal control promotion function: CSR Promotion Department
Formulation/operation of internal control system
Support,
guidance
Ensure business is carried out appropriately
Functional groups
Support, guidance
Ensure business is carried
out appropriately
Business execution
Self-audit
Business execution
Self-audit
Business execution
Accounting/business audit
Domestic/overseas subsidiaries
Accounting/business audit
Auditors
Supervision,
creation of system
of internal control
Directors
Through a corporate governance system that intimately
unites management and manufacturing divisions, Sharp
seeks to accelerate decision-making and enhance
supervisory functions.
CORPORATE GOVERNANCE
BASIC CONCEPT CONCERNING CORPORATE GOVERNANCE
Sharp has always been a manufacturing and technology oriented
company. In an effort to further strengthen manufacturing
competency, Sharp is committed to improving the speed and quality
of managerial decisions. As a manufacturing company, our business
activities are limited to the development, production and sales of
products and devices, while at the same time there is a strong
interrelation between these activities. Accordingly, Sharp believes it
is important for all business group directors with operational
responsibility to make their management decisions after consulting
with one another. It serves to clarify their reciprocal managerial
responsibilities, and it also facilitates nimble, responsive business
execution, and mutual supervisory functions. For these reasons,
Sharp seeks to further strengthen the current Director/Corporate
Auditor System, which allows management and manufacturing
divisions to work very closely, enabling the business to expand
further. Sharp enhances its corporate governance through this
system. In June 2007, the number of corporate auditors was
increased by one to five (including three outside auditors).
STATUS OF CORPORATE GOVERNANCE SYSTEM
The Board of Directors meetings of Sharp Corporation are held on a
monthly basis to make decisions on matters stipulated by law and
management-related matters of importance, thereby exercising its
oversight responsibility over its business affairs. To improve
management agility and flexibility, and to clarify the responsibilities
of company management during each accounting period, the term
of office for members of the Board of Directors is set at one year.
In addition to the Board of Directors, the company has the Executive
Management Committee, where matters of importance related to
corporate management and business operation are discussed and
reported twice a month. Through this committee, executive
decisions are made promptly.
The Board of Corporate Auditors formulates audit policies, and
conducts hearings on the company’s activities and performance
from accounting auditors and corporate directors. The Board also
exchanges information and opinions on such matters as auditing
(on-site auditing) results and the progress of deliberations of
important meetings, which increases the validity of audits.
DIAGRAM OF CORPORATE GOVERNANCE/
INTERNAL CONTROL SYSTEM
*also responsible for directing and administrating the assigned
subsidiaries